Question
Filing Requirements. (Obj. 6) For each of the following situations, determine whether the taxpayer must file a tax return for 2020. Provide a full explanation
Filing Requirements. (Obj. 6) For each of the following situations, determine whether the taxpayer must file a tax return for 2020. Provide a full explanation for your answer for your answer, including which threshold was used in making your determination.
a) Andy, age 17, is claimed as a dependent on his parents tax return. He earned $3,190 from his paper route and other after-school jobs. Andy deposits most of his earnings in a savings account at the local bank. His interest income was $400.
b) Marla, age 25, is claimed as a dependent on her parent's tax return. She received a $5,000 tax-free academic scholarship during the year. Marla had interest income of $125 and $415 of net earnings from self-employment.
c) Todd, age 22, and single, graduated from college last year. He has not been able to find a full-time job. Todd had wages from a part-time job of $5,000 and had no other income. Although he used some of his earned income for support items, the majority of Todds support came from his parents.
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